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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The Company presents the fair value of derivative contracts on a net basis in the consolidated balance sheets as they are subject to master netting arrangements. The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:


	As of December 31, 2022
	Presented without		As Presented with
	Effects of Netting	Effects of Netting	Effects of Netting
	(In thousands)
Derivative Assets


Fair value of derivatives - current	$51,984	($30,652)	$21,332


Other assets, net	$1,343	($889)	$454

Derivative Liabilities


Fair value of derivatives - current	($46,849)	$30,652	($16,197)


Fair value of derivatives - non current	($14,304)	$889	($13,415)


	As of December 31, 2021
	Presented without		As Presented with
	Effects of Netting	Effects of Netting	Effects of Netting
	(In thousands)
Assets
Commodity derivative instruments	$25,469	($23,921)	$1,548
Contingent consideration arrangements	20,833	—	20,833
Fair value of derivatives - current	$46,302	($23,921)	$22,381
Commodity derivative instruments	$1,119	($869)	$250
Other assets, net	$1,119	($869)	$250

Liabilities
Commodity derivative instruments (1)	($184,898)	$23,921	($160,977)
Contingent consideration arrangements	(25,000)	—	(25,000)
Fair value of derivatives - current	($209,898)	$23,921	($185,977)
Commodity derivative instruments	($12,278)	$869	($11,409)

Fair value of derivatives - non current	($12,278)	$869	($11,409)

(1) Includes approximately $2.9 million of deferred premiums, which were paid as the applicable contracts settled.

Schedule of Offsetting Liabilities


	As of December 31, 2022
	Presented without		As Presented with
	Effects of Netting	Effects of Netting	Effects of Netting
	(In thousands)
Derivative Assets


Fair value of derivatives - current	$51,984	($30,652)	$21,332


Other assets, net	$1,343	($889)	$454

Derivative Liabilities


Fair value of derivatives - current	($46,849)	$30,652	($16,197)


Fair value of derivatives - non current	($14,304)	$889	($13,415)


	As of December 31, 2021
	Presented without		As Presented with
	Effects of Netting	Effects of Netting	Effects of Netting
	(In thousands)
Assets
Commodity derivative instruments	$25,469	($23,921)	$1,548
Contingent consideration arrangements	20,833	—	20,833
Fair value of derivatives - current	$46,302	($23,921)	$22,381
Commodity derivative instruments	$1,119	($869)	$250
Other assets, net	$1,119	($869)	$250

Liabilities
Commodity derivative instruments (1)	($184,898)	$23,921	($160,977)
Contingent consideration arrangements	(25,000)	—	(25,000)
Fair value of derivatives - current	($209,898)	$23,921	($185,977)
Commodity derivative instruments	($12,278)	$869	($11,409)

Fair value of derivatives - non current	($12,278)	$869	($11,409)

(1) Includes approximately $2.9 million of deferred premiums, which were paid as the applicable contracts settled.

Schedule of Gain or Loss on Derivative Contracts

The components of “Loss on derivative contracts” are as follows for the respective periods:


	Years Ended December 31,
	2022	2021	2020
	(In thousands)
(Gain) loss on oil derivatives	$287,379	$429,156	($48,031)
Loss on natural gas derivatives	38,803	33,621	14,883
Loss on NGL derivatives	4,771	6,768	2,426
(Gain) loss on contingent consideration arrangements	—	(2,635)	2,976
Loss on September 2020 Warrants liability (1)	—	55,390	55,519
Loss on derivative contracts	$330,953	$522,300	$27,773

(1) A detailed discussion of the Company’s September 2020 Warrants can be found in “Part II, Item 8. Financial Statements and Supplementary Data, Note 7 – Borrowings” of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 24, 2022.

Schedule of Derivative Instruments

The components of “Cash received (paid) for commodity derivative settlements, net” and “Cash received (paid) for settlements of contingent consideration arrangements, net” are as follows for the respective periods:


	Years Ended December 31,
	2022	2021	2020
	(In thousands)
Cash flows from operating activities
Cash received (paid) on oil derivatives	($429,017)	($350,340)	$98,723
Cash received (paid) on natural gas derivatives	(60,914)	(34,576)	147
Cash paid on NGL derivatives	(3,783)	(10,181)	—
Cash received (paid) for commodity derivative settlements, net	($493,714)	($395,097)	$98,870
Cash received for settlements of contingent consideration arrangements, net	$6,492	$—	$—

Cash flows from investing activities
Cash paid for settlement of contingent consideration arrangement	($19,171)	$—	($40,000)

Cash flows from financing activities
Cash received for settlement of contingent consideration arrangement	$8,512	$—	$—

Schedule of Outstanding Oil and Natural Gas Derivative Contracts

Listed in the tables below are the outstanding oil and natural gas derivative contracts as of December 31, 2022:


	For the Full Year	For the Full Year
Oil Contracts (WTI)	2023	2024








Swap Contracts
Total volume (Bbls)	1,541,500	—
Weighted average price per Bbl	$79.87	$—
Collar Contracts (Three-Way Collars)
Total volume (Bbls)	1,825,000	—
Weighted average price per Bbl
Ceiling (short call)	$90.00	$—
Floor (long put)	$70.00	$—
Floor (short put)	$50.00	$—
Collar Contracts (Two-Way Collars)
Total volume (Bbls)	2,365,000	—
Weighted average price per Bbl
Ceiling (short call)	$88.26	$—
Floor (long put)	$72.22	$—



Short Call Swaption Contracts (1)
Total volume (Bbls)	—	1,830,000
Weighted average price per Bbl	$—	$80.30

(1) The 2024 short call swaption contracts have exercise expiration dates of December 29, 2023.


	For the Full Year	For the Full Year
Natural Gas Contracts (Henry Hub)	2023	2024
Swap Contracts
Total volume (MMBtu)	2,140,000	—
Weighted average price per MMBtu	$5.11	$—






Collar Contracts
Total volume (MMBtu)	8,780,000	—
Weighted average price per MMBtu
Ceiling (short call)	$6.52	$—
Floor (long put)	$4.37	$—




Natural Gas Contracts (Waha Basis Differential)
Swap Contracts
Total volume (MMBtu)	6,080,000	—
Weighted average price per MMBtu	($0.75)	$—

Natural Gas Contracts (HSC Basis Differential)
Swap Contracts
Total volume (MMBtu)	7,300,000	7,320,000
Weighted average price per MMBtu	($0.27)	($0.45)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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+ Details